Daily Review 21.03.2024

GO Group operating profit increases by 23%


The MSE Equity Price Index fell by 0.83% to a one-month low of 3,752.420 points as the declines in the ordinary shares of RS2, Malita, IHI, HSBC and APS outweighed the gains in GO, BOV, BMIT and Malta Properties. Meanwhile, two other equities closed unchanged as today’s trading activity in local equities amounted to €0.50 million. Download today’s Equity Market Summary.

GO plc moved 1.3% higher to the €3.08 level across six trades totalling 17,360 shares. Total Group revenue increased by 9.9% to a record of €235.9 million reflecting growth across all three operating segments. Operating costs net of other income increased by 7.9% to €201.0 million reflecting the higher level of business activity and cost inflation throughout the year. As a result, operating profit surged by 23.1% to €34.9 million resulting in an improved EBIT margin of 14.8% Net profit attributable to GO’s shareholders for 2023 amounted to €14.4 million (2022: €11.6 million) which translates into a return on average equity of 15.8% (2022: 12.2%). The Directors of GO are recommending the payment of a final net dividend of €0.05 per share (2022: €0.09). Coupled with the interim net dividend of €0.07 (2022: €0.06) per share paid in September 2023, the total net dividend distribution for the financial year 2023 amounts to €0.12 per share. The final net dividend is payable on 4 June 2024 to all shareholders as at the close of trading on 26 April 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 30 May 2024. GO also distributed an extraordinary interim dividend of €0.15 per share in February 2024 following the successful completion of the sale of GO’s passive mobile infrastructure to BMIT.

GO’s subsidiary BMIT Technologies plc surged by 3.2% to the €0.382 level after failing to hold onto an intra-day high of €0.392 (+5.9%) level over four trades totalling 30,800 shares.

Bank of Valletta plc gained 0.7% to reach the €1.37 level after recovering from an intraday low of €1.35 (-0.7%) over fourteen trades totalling 114,554 shares.

Malta Properties Company plc rose by 2.9% to the €0.282 level on two deals totalling 20,000 shares. MPC will release its financial results for the financial year 2023 later today.

On the other hand, the ordinary shares of RS2 plc plummeted by 6.4% to the €1.02 level across four trades totalling 117,000 shares.

Malita Investments plc moved 0.8% lower to a two-week low of €0.49 over four trades totalling 63,100 shares. Last Thursday, Malita announced that it would be extending the closing date of its Rights Issue offer by three weeks, from Friday 15 March 2024 to Friday 5 April 2024.  Furthermore, the Company will now be able to enter into placement agreements with institutional investors pursuant to the Excess Shares Offer until Wednesday 3 April 2024.

International Hotel Investments plc reversed yesterday’s gains as it slumped by 4.2% to the €0.46 level over three trades amounting to 9,909 shares.

HSBC Bank Malta plc fell by 3.6% to a one-week low of €1.35 over three deals amounting to 3,603 shares.

Also in the banking sector APS Bank plc shed 1.8% to the €0.55 level on two trades of 6,709 shares.

Meanwhile, Lombard Bank Malta plc held the €0.85 level across four trades totalling 50,000 shares.

Malta International Airport plc remained unchanged at the €5.85 level across four trades amounting to 7,700 shares.

Also among large companies by market value Simonds Farsons Cisk plc traded flat at the €6.60 level as 3,082 shares changed hands.

Today, MedservRegis plc announced that its Board of Directors is scheduled to meet on Friday 26 April 2024 to consider and approve the financial statements for the year ended 31 December 2023.

The RF MGS Index fell by 0.05% to 895.701 points as the declines in long-term MGS bid prices outweighed the gains in short-term MGS bid prices as the yield curve steepened. Yesterday, the Federal Reserve left the federal funds rate unchanged for the fifth consecutive meeting and stated that rate cuts won’t be implemented until there is more confidence that inflation is sustainably moving towards 2%. Federal Reserve members held expectations that there will be three interest rate cuts in 2024. On the other hand, the number of anticipated cuts for 2025 was trimmed down to three compared to previous expectations of four. Meanwhile, in a report released today the German Bundesbank said that the German economy is likely in recession during the first quarter of 2024 driven by weak consumption and sluggish industrial demand.


This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.